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Feb 14, 2008
Kansas
Deal Breaks Down over Carbon Tariff
Talks have broken down between Kansas Governor
Kathleen Sebelius (D) and Sunflower Electric Cooperative over
construction of two large coal-fired power plants in Holcomb near
I-70 and the Colorado border. Last year, Kansas denied a permit for
Sunflower Electric to begin construction of the proposed plants
based on projected emissions of greenhouse gases.
Early this year, Sunflower supporters in the
Kansas Legislature proposed legislation take away the state's power
to deny permits based on greenhouse gas emissions. The legislation
would require Sunflower to offset carbon emissions by investing in
energy efficiency and renewable energy projects. However, the
company could pay a tax of $3 per ton of carbon emitted if it did
not meet the renewable energy goals.
Sebelius rejected the proposed legislation in late
January after talks with Sunflower Electric collapsed. The governor
maintained that a $3 per ton tax was too small to induce significant
investment in renewable energy from Sunflower. Instead, she offered
the company permission to build one of the two plants to meet load
growth in western Kansas. (The second plant is targeted to meet load
growth on Colorado's Front Range through an agreement with Tri-State
G&T.) In addition, the Governor proposed firm commitments from
Sunflower to build wind capacity in Kansas. Sunflower rejected the
offer.
Yesterday, the Kansas Senate began to debate the
energy legislation. The future of wind energy and coal expansion in
Kansas is headed to a bruising legislative battle, according to an
article published in the January 31 edition of the Kansas City Star
titled "Sebelius Opposed Bill that would Allow Coal-Burning Plant to
Expand."
http://www.kansascity.com/115/story/470472.html
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